There are several tax changes that will take effect this year. Here are highlights of those that will have the greatest impact on the trucking industry.

Eliminate the stress: In 2001 you can allow the IRS to speak directly to your tax preparer about your return. This is a great way to reduce the stress associated with any IRS contact. Simply check the "Yes" box in the "Third Party Designee" area directly above where you sign your return, or tell your tax preparer.

Child tax credits: If you have a child who is under the age of 17 at the end of 2001, you may be able to claim the Child Tax Credit and/or the Additional Child Tax Credit. The total of these credits cannot be more than $600 for each qualifying child. This is an increase of $100 over last year. Check with your tax preparer to see if your child qualifies.

The Child Tax Credit is a deduction from the amount of tax you owe. If you do not owe any tax, you can not take this credit. The Additional Child Tax Credit is a refundable credit. In other words, you could qualify for a refund even if you do not owe any taxes.

Student Loan Interest: If you paid interest on a qualifying student loan, you may be able to deduct up to $2,500 of that interest. This is up from $2,000 last year. Be sure your tax preparer gets your 1099 student loan interest statement at the end of the year.

Self-employed Health Insurance Deduction: The self-employed health insurance deduction remains unchanged at 60% for 2001. After 2001 the deduction will gradually increase to 80% by 2008. If you've been thinking about health insurance, now is a great time. A major illness without health insurance could be financially devastating.

Standard Mileage: The rate for business travel is 34.5 cents per mile in 2001, up from 32.5 cents per mile. (In most cases the actual expenses for fuel, repairs, tolls, scales, etc., will yield a higher deduction than the 34.5 cents per mile rule.)

Per-Diem: For workers who come under the "Hours of Service" limitation (trucking comes under this rule), in 2001, you can deduct 60% of your meal expenses for travel away from your tax home. This is unchanged from last year. This deduction will gradually increase to 80% by 2008.

The trucking industry falls under the "Special Rules for Transportation Workers" which allows for averaging of the per-diem rate. The rate for 2001 is unchanged at $38 per day for travel inside the United States and $42 per day for travel outside the United States.

Standard Deduction: The standard deduction for 2001 has been increased for every filing status. Here's the breakdown:

Married filing jointly or qualifying widow(er): $7,600 (up from $7,350)
Head of Household: $6,650 (up from $6,450)
Single: $4,550 (up from $4,400)
Married filing separately: $3,800 (up from $3,675)

Exemption deduction: The deduction for exemptions is $2,900 for 2001, up from $2,800 in 2000.

To find out more about the services offered by Blair Tax Consulting check out the web site at www.blairtax.com or call (800) 882-5247.